PFRDA allows banks to set up NPS pension funds; Dinesh Kumar Khara to chair NPS Trust
The PFRDA board approved in principle a framework letting Scheduled Commercial Banks set up pension funds to manage NPS, and appointed former SBI Chairman Dinesh Kumar Khara as Chairperson of the NPS Trust Board, the Finance Ministry said on 1 January 2026.
Summary
The Pension Fund Regulatory and Development Authority (PFRDA) board has approved in principle a framework allowing Scheduled Commercial Banks to independently set up pension funds to manage the National Pension System (NPS), to increase competition and protect subscribers, the Finance Ministry said on 1 January 2026. PFRDA appointed three new trustees to the NPS Trust Board â former SBI Chairman Dinesh Kumar Khara, who was also designated Chairperson, Swati Anil Kulkarni and Dr Arvind Gupta. PFRDA has also revised the slab-based Investment Management Fee for pension funds with effect from 1 April 2026.
Key facts
- Reform
- Scheduled Commercial Banks may set up pension funds for NPS (in-principle)
- NPS Trust chair
- Dinesh Kumar Khara (former SBI Chairman)
- Other trustees
- Swati Anil Kulkarni; Dr Arvind Gupta
- Investment Management Fee
- Revised slab-based structure from 1 April 2026
Practice MCQs 2 questions
Who has been designated Chairperson of the NPS Trust Board by PFRDA, as announced in January 2026?
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Correct answer: C â Dinesh Kumar Khara
PIB (Finance): Dinesh Kumar Khara, former Chairman of SBI, has been appointed a trustee and designated Chairperson of the NPS Trust Board.
Consider the following statements about the PFRDA reforms announced in January 2026: 1. Scheduled Commercial Banks may independently set up pension funds to manage NPS, under an in-principle framework. 2. The revised Investment Management Fee for pension funds applies from 1 April 2026. 3. Three new trustees were appointed to the NPS Trust Board. Which of the statements given above is/are correct?
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Correct answer: B â 1, 2 and 3
PIB (Finance): the board approved in principle a framework for banks to set up pension funds; the revised IMF applies from 1 April 2026; and three new trustees were appointed. All three are correct.